Missouri legislators recently prefiled not one, but two separate sports betting bills to be discussed in Missouri’s next legislative session, which begins on Jan. 4, 2023. Sen. Denny Hoskins prefiled SB1 which “modifies provisions relating to gaming” while Sen. Tony Luetkemeyer prefiled SB30 which “authorizes sports wagering.”
While both bills ultimately seek to legalize online and retail sports betting in the state, Hoskins’ bill also includes the legalization of video lottery terminals (VLTs).
Per SB1, “video lottery game terminals may be placed in fraternal organizations, veterans’ organizations, and truck stops, as such terms are defined in the act, and in business entities licensed to sell liquor by the drink.” No more than eight VLTs are permitted at any one establishment.
The Missouri Gaming Commission will collect an annual license fee (amount undetermined), a renewal fee (if applicable), and a $300 annual administrative fee, for each VLT in service. Furthermore, VLTs will be taxed at 36% of adjusted gross receipts. The bill explains that “the net proceeds of the sale of video lottery game tickets shall be appropriated equally to public elementary and secondary education and public institutions of higher education with an emphasis on funding elementary and secondary education student transportation costs and higher education workforce development programs.”
In addition to VLTs, SB1 includes standard online and retail sports betting legalization in its proposal. Missouri’s casinos (mostly riverboat casinos) would be able to offer retail and mobile sports betting through up to two mobile operators. Missouri’s professional sports teams could “designate a designated sports district mobile licensee, as defined in the act, to conduct sports wagering via an interactive sports wagering platform within the designated sports district.” These districts are defined as “areas surrounding stadiums in which professional sports teams play their home games.” In other words, mobile sports betting through the state’s professional sports teams would only be available for users within said districts.
Any licensed sports betting operator in the state would be taxed at a 10% rate.
Missouri already gearing up for another run at sports betting in 2023, as two sports betting bills have been pre-filed.
1. Bill from @DLHoskins. Legalize retail/mobile sports betting and Video Lottery Terminals.
2. Sen. Luetkemeyer. 10% sports betting tax. Online/retail.
— RLinnehanXL (@RLinnehanXl) December 5, 2022
The second bill proposed by Luetkemeyer proposes similar changes, without the addition of VLts. Similar to SB1, SB30 also establishes “sports districts” that allows these professional sports teams to exclusively offer their online sportsbook in the designated district. They can either brand their own sportsbook or partner with an established one.
Meanwhile, Missouri casinos “may conduct sports wagering through up to three individually branded interactive sports wagering platforms” and “one interactive sports wagering platform.”
This bill also establishes the sports betting tax rate for operators at 10%.
— Kansas City Chiefs (@Chiefs) December 5, 2022
Missouri Sports Betting Outlook
Missouri is home to the Kansas City Royals and the St. Louis Cardinals, but no sports team is more iconic than the Kansas City Chiefs, which it also hosts. Aside from having this year’s leading MVP candidate as their quarterback, the Chiefs fan base has also been dubbed the rowdiest crowd in the league after posting a record of 142.2 decibels during a 2014 game. If these fans were able to bet on their hometown team, there’s no telling how successful sports betting could be in Arrowhead Stadium alone.
However, rumors circulated earlier this year that Kansas lawmakers were trying to get the Chiefs to jump state lines and relocate to Kansas, in the wake of their sports betting legalization. If this were to happen, it would have a big impact on just how lucrative the Missouri market is.
All that being said, the Missouri legislative session ends on April 10, 2023 so they’ve got about five months to get the ball rolling…in their direction.